NEW YORK — Consumer confidence hit an all-time low in December, dropping further in the face of rising layoffs, in yet another sign that consumer spending is unlikely to pull the U.S. out of a year-long recession any time soon.
Consumers have been nervous about spending for months — putting off big-ticket purchases, forgoing new clothes and choosing store brands at the grocery store — all of which may make this the worst holiday season for retailers in decades.
The Consumer Confidence Index measured by the Conference Board, a private research group, fell to 38 in December from a revised 44.7 in November.
That is its lowest point since the group began compiling the index in 1967, and below the previous low of 38.8 in October. Economists surveyed by Thomson Reuters had expected the index to rise incrementally to 45.
“Deepening job insecurity and falling asset prices are outweighing any optimism consumers may have derived from falling gas prices,” said Dana Saporta, U.S. economist at investment bank Dresdner Kleinwort.
The unemployment rate hit a 15-year high in November, and economists expect additional job losses in the first half of 2009.
Those saying in the Conference Board survey that jobs are “hard to get” rose to 42 percent in December from 37.1 percent in November, when the unemployment rate stood at 6.7 percent.
Those claiming business conditions are “bad” increased to 46 percent in December from 40.6 percent in November.
